This is surely the sort of story Digg would prefer to keep buried. The social media site this week announced that it will be making major cuts to its staff, in an attempt to become profitable by some point next year. The note was written by the company’s new CEO Matt Williams, who took over for Digg founder a mere six weeks ago.
“[W]e have to take some difficult steps,” Williams wrote. “The fact is our business has a burn rate that is too high. We must significantly cut our expenses to achieve profitability in 2011. We’ve considered all of the possible options for reduction, from salaries to fixed costs. The result is that, in addition to lowering many of our operational costs, I’ve made the decision to downsize our staff from 67 to 42 people.”
It’s a staff decrease of 25 people–about 37 percent of the Digg’s total staff. It’s the latest move for a site that has taken a decided stumble in recent months, thanks in no small part to a redesign, which caused even some of its most devoted fans to flee Digg for greener pastures, including competitors like Reddit.
“It’s been an incredibly tough decision,” Williams added. “I wish it weren’t necessary. However, I know it’s the right choice for Digg’s future success as a business. I’m personally committed to help find new opportunities for everyone affected by the transition.”